Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Victor Sendirian Berhad (Victor) is a company that provides call centre services for a variety of organisations. It operates in a medium sized city and

image text in transcribed

image text in transcribedimage text in transcribed
Victor Sendirian Berhad (Victor) is a company that provides call centre services for a variety of organisations. It operates in a medium sized city and your firm is the largest audit firm in the city. Victor is owned and run by two entrepreneurs with experience in this sector and has been in existence for five years. It is expanding rapidly in terms of its client base, the number of staff it employs and its profits. It is now 15 August 2019 and you have been approached to perform the audit for the year ending 30 August 2019. Your firm has not audited this company before. Victor has had three different firms of auditors since its incorporation. Victor's directors have indicated to you informally that the reason they wish to change auditors is because of a disagreement about certain disclosures in the financial statements in the previous year. The directors consider that the disagreement is a trivial matter and have indicated that the company accountant will be able to provide you with the details once the audit has commenced. Your firm has explained that before accepting the appointment, there are various matters to be considered within the firm and other procedures to be undertaken, some of which will require the co-operation of the directors. Your firm has other clients that operate call centres. The directors have asked your firm to commence the audit immediately because audited accounts are needed by the bank by 30 September 2019. Your firm is very busy at this time of year.Required: {a} Describe any SIX {6} matters that need to he considered before accepting the appointment as auditor to Victor. [9 marks) (b) Explain the purpose of an engagement letter. [5 marks) (c) Assuming your audit rm has decided to accept the appointment as Victor's external auditor, explain any FDUR [4) matters that needed to he considered to understand Victor as an entity. {IE marks) (d) Discuss any FIVE [5] typical audit procedures that you would apply at the planning stage of 1Victor's audit. {5 marks) [range 25 Marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

10th Edition

B010IKDQZM

More Books

Students also viewed these Accounting questions

Question

Explain the major characteristics of a profit-sharing plan.

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago